Loans Guide
Business Vehicle & Equipment Finance
Looking to finance your business vehicle or equipment? We provide a wide range of business vehicle and equipment finance options.
Introduction to
Comprehensive Guide to Business Vehicle and Equipment Finance in Australia
Equipment is a critical component for the growth and success of your business. However, large-scale purchases can strain your finances and disrupt everyday operations. This is where equipment and vehicle finance solutions come into play. By providing the funds necessary to acquire essential machinery and vehicles, these financial products ensure you can maintain cash flow and continue developing your business without costly interruptions.
If you need to secure funds to purchase equipment or vehicles, contact us today to discuss your options.
Types of Equipment and Vehicle Loans
Chattel Mortgage
Under a chattel mortgage, the equipment or vehicle belongs to your business from the start. The lender uses the equipment as collateral, having a ‘charge’ over it until all repayments are completed. A significant advantage is the ability to claim the GST on the purchase during your next BAS claim.
Commercial Hire Purchase
In this arrangement, the lender initially owns the equipment, and with each repayment, your equity increases until you become the owner once the final payment is made. This method allows other assets to remain free for alternative financing needs.
Finance Leases
The lender retains ownership of the equipment, and you lease it from them. This option frees you from ownership responsibilities and the need for upfront payments, which can significantly benefit cash flow.

What is Equipment and Vehicle Finance?
Equipment and vehicle finance provides businesses with the capital to purchase necessary and specialized equipment for operations. Whether you’re acquiring dental equipment for a private practice or a dump truck for a construction company, this type of finance is essential for various industries. Offered by banks and various lenders, equipment finance solutions come in multiple forms tailored to your financial situation, tax requirements, and budget, ensuring your business can grow and thrive.
Benefits of Equipment and Vehicle Finance
This type of finance offers a diverse range of options to cater to various business and budget needs. It provides essential cash flow flexibility, enabling businesses to acquire crucial equipment without significant financial strain. Additional benefits include potential tax deductions and tailored repayment plans to suit your budget. However, it’s crucial to avoid overextending your finances. Carefully evaluate your equipment needs and repayment capabilities before committing to any financial agreement.
Interest Rates and Fees
Most equipment finance options come with fixed interest rates and typically involve regular monthly payments over a set term. Fixed interest rates provide stability, aiding better budgeting and financial planning. Additionally, financing your equipment frees up capital for other business growth opportunities. Be aware of setup fees, late payment penalties, and early repayment charges, as these can significantly affect the overall cost of your loan.
Qualifying Criteria
Most businesses, including startups and those with unstable credit, can qualify for equipment and vehicle finance. Numerous prequalification tools online can help you determine your eligibility. The criteria may include:
What Can Be Financed?
Applying for a Loan: Process and Requirements
To ensure a smooth application process, prepare the following documents:
The thorough preparation of these documents can prevent delays and facilitate quicker loan approval.
Additional Considerations

Loan Terms
Equipment and vehicle finance terms typically range from 12 to 84 months. For more expensive items with a longer

Balloon Payments
A balloon or residual payment is a larger payment due at the end of the finance term. It allows for lower monthly payments during the loan term. However, setting a high balloon payment can result in a negative equity position if the final payment exceeds the asset’s market value at the end of the term.

Choosing the Right Finance Option
Each finance option (loan, lease, or hire purchase) has unique benefits and conditions. Carefully consider your business’s financial needs, asset usage, and cash flow management when deciding.
Conclusion
Choosing the right vehicle and equipment finance is crucial for maintaining and growing your business. By understanding the types of financing available and evaluating your specific needs, you can make informed decisions that bolster your business’s capabilities without straining your resources.
FAQs
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